Administration Ponders Establishing National Crypto Reserve with Unconventional Funding Mechanism

Title: Trump Team Considers National Bitcoin Reserve Backed by Tariff Revenues

The Trump administration is considering the establishment of a national Bitcoin reserve, with a unique twist – it would be funded through tariff revenues. This innovative approach aims to promote financial sovereignty and shield the country’s economy against global shocks.

In a recent interview with Thinking Crypto, David Hines, a member of the Trump team, explained that their objective is to create a strategic Bitcoin reserve through budget-neutral means. The strategy involves using innovative mechanisms such as tariff income, which would allow for the accumulation of this cryptocurrency without compromising the country’s fiscal position.

This vision contrasts with an earlier proposal by Republican Senator Cynthia Lummis, who suggested selling part of the Federal Reserve’s gold holdings to finance Bitcoin purchases. Hines emphasizes that early accumulation is crucial due to Bitcoin’s limited supply and the need to protect the U.S. economy from global shocks.

The Trump administration’s goal is not only to secure a strategic advantage but also to integrate stablecoins and blockchain technology into the national banking system. The focus would be on enhancing security, traceability, and institutional strengthening.

While some experts have expressed concerns about using tariffs as a tool to acquire Bitcoin and potential impacts on U.S.-based miners, it appears that the Trump team is committed to this vision.

Source: https://crypto-economy.com/trump-team-considers-national-bitcoin-reserve-backed-by-tariff-revenues/